Abstract
Emergence of technology and competitive pressures led by financial liberalisation are driving fundamental shifts in the way Indian banks operate and deliver services to their customers. Banks are progressively moving towards an age of high-technology banking in order to ensure operational excellence and higher customer satisfaction. Use of technology for providing banking services requires investment of money and time and it becomes imperative to understand whether technological innovations really boost the level of customer satisfaction. This paper attempts to measure the impact of demographic variables on various determinants of customer satisfaction in the Indian banking industry, e.g., security, reliability, privacy. Confirmatory factor analysis (CFA) using AMOS 18 was utilised to examine the validity and reliability of the measurement model. The study is based on a survey of banking customers particularly in the National Capital Region of Delhi. The study is limited to two innovations in the banking industry: credit/debit card and internet banking.
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